Managing IT Spend as Budgets Shrink and Costs Soar

All Posts

Managing IT Spend as Budgets Shrink and Costs Soar

When the Covid-19 pandemic struck three years ago, organizations spent at record rates to enable remote workforces. This included investments in hardware and digital collaboration platforms. Fast forward to today, and organizations are contending with the economic downturn and rising inflation. IT departments face growing pressure to contain or reduce costs. To succeed, they must maximize investments in existing technology while still delivering on organizational goals.

Given that for most companies the IT asset turnover is three years, leases are now coming to an end and/or it’s time to purchase new equipment to replace what was distributed at the start of lockdowns. But, with a mix of hybrid, remote and office-based employees, decisions are complex. Many companies are looking for ways to extend previous investments to reduce capital expenditures this year. They’re asking if anything can be reclaimed, rebuilt, or reused.

Asking the right questions

To find ways to control costs associated with IT asset refresh cycles, think about:

  • Which employees are still working remotely and how many are back in the office full time? Can you reclaim or reuse any equipment?
  • What equipment needs replacing? Would it be cheaper to extend current leases?
  • How do you accurately map end user requirements to asset procurement?
  • What software licenses do you need?
  • How will you coordinate asset refresh cycles with Windows updates or migration to Windows 11?
  • How will future departmental growth or reduction plans will impact IT?
  • Are asset ownership and costs properly attributed to the right business unit or department?
  • What growth plans does each department have – will they be adding employees or evolving technologies?

Getting the answers

You could ask your teams to answer these questions by scanning networks, using CMDBs, systems and access management platforms, and pulling together information from HR databases and emailing department leads into spreadsheets. But this will take time and resources. Even if teams have been building out an asset database (with the pressure IT has been under the last few years, it’s unlikely they’ve had the time), given the dynamic nature of any enterprise, it will be out of date and likely contain numerous errors.

To gain an accurate picture, IT will need to do a lot of fact checking, working with end users and managers to validate records. It’s unlikely you have time for that either. So, what can you do? Estimating requirements using your COVID lockdown spend as a guideline is going to be impossible without accurate data.

Use automation to identify cost savings opportunities

There is a way to cut the time and effort of gaining a real-time view of your IT estate and identify cost savings opportunities, and that’s by implementing a digital platform conductor (DPC).

A DPC connects to disparate management tools, within and outside of IT’s domain and applies intelligent automation to collect, clean, and aggregate data into a single, centralized view. It identifies missing or conflicting information that may require human intervention to correct. The process of getting this information is automated via triggered communications that take users or stakeholders to a self-service portal where they can confirm or correct information. With a clear picture of information such as end user roles, location, usage patterns, and working practices, you can make smarter decisions on asset needs going forward.

For example:

  • Upgrading to Windows 11? Integrate IT hardware refresh cycles.
  • What can be consolidated? Can you save on software licenses, consolidate apps for better performance and cost savings? Use accurate data to inform your decision.
  • Time to acquire new laptops? Use accurate data about what you have in inventory, user needs, and user roles to see what can be repurposed

With a DPC you can reduce CapEx by eliminating unnecessary hardware acquisition and purchase only the assets you really need. You can also reduce OpEx by leveraging a DPC’s orchestration capabilities; automate system and human workflows to increase resource capacity and reduce program costs.

Book a demo to see how ReadyWorks can simplify asset management and provide you with the information you need to build better more accurate budgets without the headaches.

Related Posts

The Cost of Dark Data

The amount of data we are producing is rising at a dramatic rate. Statista predicts that b...

The Cybersecurity Risks caused by Human Error and How to Avoid Them

Through its research on the Psychology of Human Error, Stamford University released a repo...

How to Stay Off the Cyber Security Data Breach Naughty List

As the number of cyberattacks continues to rise across the globe, many are warning that th...